UK Financial Services Recovering Fastest Since Crisis
Published By : 07 Oct 2014 | Published By : QYRESEARCH
According to the latest report by CBI, the British financial services industry is recovering and growing at a fast rate ever since the financial crisis first started. Many firms have started reporting profits along with increasing volumes since 2007. The companies providing financial services are confident that they will win new customers in the coming three months, after a slowdown in the past two years.
CBI’s director for economies, Rain Newton-Smith stated, the sharp drop in value of non-performing loans is actually of a measurement of improving system after the last financial crisis. The biggest concern financial services sector is the possible competition. Cut-throat competition would mean that businesses will have to shift their gaze from demand to other businesses luring is customers. Business houses are expecting that sales to new customers will be the big growth driver in the coming quarter.
The other challenges this sector faces are impact of legislation in Britain and Europe, which is inclusive of possible financial transaction tax and new capital requirements. The survey collectively published by CBI and PwC indicated that volumes of 60% firms were up, while those of 11% suffered. This still leaves the sector with a positive increase of 49%, which was the highest since 2007. Around 21% firms in the financial sector also stated, they are more optimistic about the growth in the business, while 7% seemed doubtful. Once again, this denotes a positive sentiment of about 14%, which down from 28% from last year.
The financial services sector is also likely to witness an increase in hiring in the coming three months.